Businessweek

Coach, Inc. engages in the design and marketing of fine accessories and gifts for women and men in the United States and internationally. Segments The company operates in two segments, Direct-to-Consumer and Indirect. Direct-to-Consumer Segment The Direct-to-Consumer segment consists of channels that provide the company with immediate, controlled access to consumers: Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China; Taiwan; Singapore; and the Internet. This segment also includes Coach-operated stores in Malaysia and Korea. North American Retail Stores: The company's stores are located in regional shopping centers and metropolitan areas throughout the U.S. and Canada. The retail stores carry an assortment of products depending on their size and location. The company’s primary stores, which offer the broadest assortment of Coach products, are located in high-visibility locations, such as New York, Chicago, San Francisco, and Toronto. North American Factory Store: The company's factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name. The company’s factory store design, visual presentations, and customer service levels support and reinforce the brand's image. Through these factory stores, it targets value-oriented customers who would not otherwise buy the Coach brand. Internet: The company views its Website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store locations and build brand awareness. With approximately 76 million visits to the coach.com e-commerce Website, the company’s online store provides a showcase environment where consumers can browse through a selected offering of the latest styles and colors. The company’s e-commerce programs also include third-party flash sites and its invitation-only factory flash site. Coach Japan: Coach Japan operates department store shop-in-shop locations and freestanding flagship, retail and factory stores, as well as an e-commerce Website. Flagship stores, which offer the broadest assortment of the company’s products, are located in select shopping districts throughout Japan. Coach China: Coach China operates department store shop-in-shop locations, as well as freestanding flagship, retail and factory stores. Flagship stores, which offer an assortment of the company’s products, are located in select shopping districts throughout Hong Kong and mainland China. Coach Singapore and Taiwan: Coach Singapore and Taiwan operate department store shop-in-shop locations, as well as freestanding flagship, retail and factory stores. Flagship stores, which offer the broadest assortment of Coach products are located in select shopping districts in Singapore and Taiwan. Reed Krakoff: The Reed Krakoff brand represents new American luxury primarily for handbags, accessories, and ready-to-wear. The company offers the Reed Krakoff brand with store openings in North America and internationally through specialty retailers in 2011. Reed Krakoff operates department store shop-in-shop locations, freestanding flagship stores, as well as an e-commerce Website at reedkrakoff.com. Flagship stores, which offer the broadest assortment of Reed Krakoff products, are located in select shopping districts in the U.S. Indirect Segment The Indirect segment operates as a U.S. wholesaler to department stores. U.S. Wholesale: This channel offers access to the company’ products to consumers who prefer shopping at department stores. Coach custom tailors its assortments through wholesale product planning and allocation processes to better match the attributes of its department store consumers in each local market. Coach products are also available on macys.com, dillards.com, bloomingdales.com, lordandtaylor.com, belk.com, vonmaur.com and nordstrom.com. The company’s products are sold in approximately 990 wholesale locations in the U.S. and Canada. The company’s major significant U.S. wholesale customers are Macy